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- Source/Chief Business Intelligence
- Author/Chief Business Intelligence
Introduction: Slipping 2 digits, Porsche is really not fragrant in China! Once a luxury luxury car "king" position, I am afraid to fall into the "altar".
Isn't the Porsche Chinese market happy? Really can't sell anymore? The latest quarterly report shows: the "achievement" of 12% year-on-year decline in delivery, you know, Porsche has delivered more than 242,700 vehicles around the world this year, but the Chinese market has not increased but fallen, which is indeed intriguing!
Source: Porsche official website
Obviously, in the first half of this year, data released on Porsche's official website showed that Porsche's sales in China increased by 8% year-on-year. Why is the first three quarters of the data falling so much now? It's really confusing. What caused Porsche's sales to fall to 40% in the third quarter?
Source: Porsche financial report
01. In the past 8 consecutive years, the Chinese market has been the largest market for Porsche in the world
Source: China Association of Automobile Manufacturers
Porsche, which has always been the representative of high-end, luxury car brands, is favored by Chinese people, especially high-net-worth people, according to statistics, the domestic market for 8 consecutive years Porsche is the world's largest single market.
Source: Porsche Cars
Compared with German luxury brands such as Mercedes-Benz, BMW and Audi, Porsche does have a more outstanding performance in terms of brand image. This gap is not only reflected in brand awareness, reputation and consumer loyalty, but also in terms of price.
Source: Autohome
In fact, some of Porsche's luxury models are much more expensive than other brands, but they are still sought after by consumers.
Source: Porsche Cars
The domestic SUV market is hot, and many consumers favor Porsche's Macan, Cayenne and other models. The luxury mid-size SUV and mid-size SUV market is highly competitive, but Porsche has shown excellent competitiveness with these two models.
Source: Screenshot of the Porsche car conference
Consumers are looking for a high quality of life, and Porsche's SUV models meet these demands in terms of performance, handling, exterior and interior.
Source: The first model of Porsche's new Cayenne
In addition, female high-end consumers also have a high degree of love for Porsche. According to the survey data, 50% of the total number of female users who buy Porsche in China is surprising. This is mainly due to the sleek, elegant and practical atmosphere exuded by Porsche models.
Source: Porsche's flagship Cayenne Turbo GT
For female consumers, Porsche not only represents high-performance luxury cars, but also a symbol of attitude and taste in life. Both models such as the Macan, Carrera and Panamera are popular with female consumers.
Source: Porsche
02. Porsche reduces prices at every turn? Has not raised prices lost its own meaning?
Such a popular Porsche, in recent years, has frequently experienced price reductions.
Source: Porsche Cars
Since 2023, Macan's market price system has undergone disruptive changes. In the past, due to the strong influence of the Porsche brand and the hot demand for Macan models, there was a phenomenon of buying at a higher price.
Source: Porsche car interior
Some netizens said: "There is a problem with Macan's positioning, the rich can't look at it, and the poor can't afford it." "As a high-end luxury car brand, Porsche's models usually carry the characteristics of high performance, high quality and high price.
People who buy Porsche cars often regard it as a luxury and expect to get a unique driving experience and brand feeling, so many people think that buying a Porsche without increasing the price loses the meaning of buying it.
Source: Porsche Cars
You know, not everyone buys a car to drive, for most ordinary people, the car is a means of transportation, but for some people, driving a Porsche has another layer, is as a social currency, is a business card, is a personal business card written on the road.
Source: Porsche Cars
As we all know, cars also have three, six, nine and so on. For those who do business, you can use cars to show strength, convenient from both suppliers and customers, to more orders and account dates.
Source: Porsche offline stores
Porsche is a brand that fits this type of businessman very well, and it is very popular for them. Luxury cars like Rolls-Royce, Maybach, and Bentley are too expensive.
And luxury cars such as BMW, Mercedes-Benz, and Audi, the high-end is too high, the low-end output is also a lot, and there are many people driving on the big road, and they cannot show their identity. Porsche has a unique advantage, the value is high enough, there has not been a very cheap car, this brand can be used as its own postcard.
Source: Porsche Cars
The most taboo thing about this kind of businessman is to buy a car to make everyone think that you are saving money. And now Porsche has reduced prices and lost the meaning of buying luxury cars. As a result, the decline in Porsche prices is not conducive to the increase in sales.
Is that really the case? You can think differently and think about it backwards.
Why is Porsche getting prices down? There is also an eight-fold Porsche. Isn't it because of the decline in sales, and the price reduction is caused in order to increase sales?
Source: There are numbers
Discounted sales can stimulate consumers' desire to buy and improve sales performance, but the result is still not selling, and deliveries plummeted by 40% in the third quarter.
On September 18, one of the reasons for the decline in Porsche's global sales volume was the inconsistency in the launch time of the new CAYENN in various markets around the world, resulting in the delivery of the main sales model in China only starting at the end of September, which affected the delivery volume in the third quarter.
Source: Porsche crossover SUV - Cayenne
This statement is not necessarily true. In the past, buying Porsche cars usually needs to be purchased at a higher price, because of short supply and brand uniqueness and other reasons, those who have bought Porsche understand that in the past, without adding a hundred thousand options, they could not lift the car at all, and now Porsche will reduce the price at every turn. You say the official explanation is credible? I don't believe it anyway. It is estimated that it is to reduce prices and increase sales.
03. Consumption downgrade, everyone does not buy expensive cars? The demand for luxury cars is still strong
In fact, the downgrade of consumption does not fully explain the change in demand in the luxury car market. While the economic environment may have an impact on consumers' purchasing power, it is not the only driver of demand in the luxury car market.
Source: Porsche Cars
According to China's passenger car data for the first three quarters released on the official website of the Passenger Transportation Association, although demand fell in July, demand remained strong in August and September. Overall, the domestic market grew by 2% in the first three quarters of passenger car retail, while sales of luxury cars increased by 26%. This shows that even in the volatile economic environment, the demand for luxury cars is still strong.
Source: Passenger Association
Therefore, the domestic demand for automobiles is still relatively large, and the luxury car market is still in strong demand. It's not that consumer spending is downgraded now, but there are other reasons.
How much money does it take to buy a luxury car, how much wealth does it take?
Source: Porsche Cars
The official guidance price of Porsche Cayenne is 91.30-1.908 million yuan, we all know that Porsche's naked car price is really a naked car price, if you do not choose a hundred thousand hundreds of thousands, you can not open a 4S store, so you can afford to drive Porsche's annual income of millions or even tens of millions.
Source: Porsche Cars
Therefore, a concept needs to be introduced here: high-net-worth people are the so-called business bosses, elites, rather than the middle class in the simple sense. Their consumption upgrades do not change with the festival, and are even less affected by the economic environment.
Source: Porsche Cars
Therefore, it can be considered that this group of people does not have any consumption degradation, they prefer brands with high added value over ordinary brands, and hope to reflect their own personality and values through these brands.
04. Everyone went to buy domestic new energy vehicles? Why do other luxury cars have little impact?
Source: Porsche Cars
Indeed, in the first three quarters of this year, the sales of traditional luxury cars increased by 13% year-on-year, while the sales of new energy luxury cars increased by 89% year-on-year, and this trend has brought a lot of impact on traditional luxury cars.
Source: Screenshot of the Porsche car conference
In the face of the transformation of domestic new energy vehicle brands and traditional automobile manufacturers to the field of new energy vehicles, the advantages of traditional luxury car brands such as Porsche are gradually weakening, and their market share has also been eroded. It is undeniable that the electrification of vehicles is the trend of the times. For traditional luxury car brands, if they cannot follow this trend and launch electric models that meet market demand in time, their market share will further decline.
Source: Screenshot of the Porsche car press conference
But for now, new energy vehicles, especially domestic, are not a grade with Porsche in terms of price or cost performance. New energy vehicles are far from having a face like Porsche, and the two models are not on the same track whether they are brand effect or cost performance, and new energy should also impact traditional cars of the same echelon.
However, BMW, Mercedes-Benz and other luxury car brands only experienced a slight decline in sales in the third quarter, and they were not strongly impacted by new energy vehicles! Why has Porsche's sales fallen so much?
Source: Porsche Cars
First of all, this is mainly because the consumption concept of young consumers in the Chinese market is changing.
They are no longer blindly pursuing brands, but are more focused on pragmatism. When buying a car, younger consumers pay more attention to the functionality and service of the vehicle than just the brand. In other words, there are now fewer people who love to "pretend to be B" and more pragmatic consumers. The car is just a means of transportation, cost-effective is the real king!
Although Porsche is facing the challenge of declining sales of traditional luxury cars, this is good news for China's new energy vehicle market. If more consumers begin to pay attention to new energy vehicles, then the rise of domestic new energy vehicle brands will also be just around the corner.
Secondly, Audi Q5L, BMW X5L, Mercedes-Benz Big S, etc., which are in the same echelon as Porsche, seize the market of Porsche.
Source: Porsche Motor Show
Porsche SUV models are very popular in the domestic market. The Maca, which was launched in 2014, has a certain audience, and has also been complained by many owners in the later stage, and many owners on the platform said that this car is smaller than the Cayenne.
Source: Porsche Maca
And the replacement of maca is extremely slow, and it has not been replaced for ten years. As a result, the early audience has developed aesthetic fatigue with maca. And the 18 years of Audi Q5L, BMW X5L launched, is even more unfavorable to Porsche, the domestic market against the Cayenne competition, especially BMW X5L, the price after domestic production of more than 600,000, plus this price The wheelbase of the whole car is also long, and the Cayenne is certainly not comparable to the X5L wheelbase. Therefore, the domestic market is so large, most of the orders have been sucked away by BMW X5L and Audi Q5L.
Source: The running score of the Porsche Maca model
Source: BMW X5 series
The domestic benchmark against Porsche Paramela's Mercedes-Benz Big S, now Mercedes-Benz Big S sales are increasing, and the size and price of these two cars are similar. Paramela's look is too personal and sporty, and it is not suitable for attending some business events. The rear of the Mercedes-Benz Big S is spacious and comfortable, and if you really want to go out to talk about business or attend events, the two are obviously more suitable than the Mercedes-Benz Big S.
Source: Mercedes-Benz Big S
05. Conclusion: I did it myself! Double standard events
Porsche's decline in sales in the Chinese market may not be due to a single reason, but is the result of a combination of factors. Among them, the double standard problem is an important factor.
Source: Porsche Cars
As an internationally renowned brand, in the process of entering the Chinese market, Porsche not only wants to earn money from Chinese consumers, but also shows a lack of understanding and respect for Chinese culture to a certain extent, which undoubtedly hurts the feelings of Chinese consumers.
Source: Porsche Maca Macan release site
Do you remember the Porsche incident that attracted a lot of attention last year? At the time, more than 500 car owners complained en masse, mainly focusing on the reduction of electric steering columns in their new cars.
However, Porsche's explanation for this matter on its official website abroad is because of the lack of chips, and it can only provide manual steering columns for the time being, and actively inform the owner that it will give $500 compensation.
Source: Porsche Motors official website news
Porsche's approach in China, however, is completely different. For the complaints of Chinese owners, Porsche only compensated 2,300 yuan in vouchers, which is far from the compensation received by foreign owners. What is even more puzzling is that if the owner wants to replace the steering column of the vehicle with an electric version, he needs to pay an additional 30,000 yuan.
Source: Porsche Cars
This double standard behavior makes many Chinese car owners feel that Porsche wants to make Chinese money while disrespecting Chinese consumers, which seriously damages the interests of Chinese car owners, which also leads to a sharp decline in Porsche's reputation in the hearts of Chinese consumers, and sales have also been affected.
Source: Porsche Macan official website price
Porsche's sales performance in China is indeed interesting, and despite good results in other markets around the world, its performance in China has declined significantly.
For Porsche, reviving sales in the Chinese market requires an in-depth analysis of current market trends and consumer needs. At the same time, Porsche also needs to actively strengthen communication and interaction with Chinese consumers while maintaining its brand image, so as to enhance brand influence and recognition.
Both Porsche and other brands should follow the principles of fairness, transparency and integrity in the global market, and build a good brand reputation and consumer relationship based on respect for consumers and meeting their needs.
Otherwise, luxury cars deviate from the correct position and make consumers cold, then the cold winter is not far away~ Officers, what do you think of Porsche? Welcome to discuss and communicate in the message area~
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